Federal crypto legislation could come with a ‘New York State of Mind’
New York State established the first comprehensive regulatory framework for cryptocurrencies a decade ago, focusing on consumer protection, anti-money laundering, and cybersecurity. The NYDFS issued its first BitLicense to Circle in 2015, followed by Ripple in 2016, positioning itself as a leader in crypto regulation. Ken Coghill, NYDFS’s deputy superintendent, emphasized the importance of firms understanding their responsibilities when managing others' assets. Traditional financial institutions are increasingly entering the crypto space, offering services like custody and settlement. The NYDFS has issued 22 BitLicenses and is prepared for more applications from traditional finance firms. Coghill's background includes 12 years with the Dubai Financial Services Authority, where he developed cryptocurrency supervision models. He advocates for balanced regulation that mitigates risk without stifling innovation. The NYDFS has influenced federal discussions on crypto regulation and continues to process applications while prioritizing market protection and consumer safety.
